3 Things You Need to Know Before Retiring
If you've worked for many years and are reaching the age when many of your peers are gearing up to retire, then you may be thinking about that milestone as well. But retiring requires careful planning, and if you rush in too quickly, you could wind up very unhappy once your career comes to a close. Here are a few important points about retirement you need to know.
Many seniors assume that once they start collecting Social Security, those benefits will suffice in covering the bulk of their bills. But unless you're planning to live an extremely frugal lifestyle, that may be far from the case.
If you're an average earner, your Social Security benefits will replace roughly 40% of your wages. But can you really survive a 60% pay cut? Probably not. Most seniors, in fact, need more like 70% to 80% of their previous wages to enjoy a decent standard of living, so if you're hoping for the same, you'll need savings outside of those benefits.
Source Fool.com
